2010 California Code
Health and Safety Code
Chapter 2. Purposes And General Provisions

50950.  The primary purpose of the agency shall be to meet the
housing needs of persons and families of low or moderate income.



50951.  In meeting the housing needs of persons and families of low
or moderate income, not less than 30 percent of the units financed by
mortgage loans or property improvement loans pursuant to this part
shall be available to, or occupied by, very low income households at
affordable rents, unless it is not possible to obtain subsidies
necessary to meet such requirement. No development loan,
rehabilitation loan, or construction loan shall be made pursuant to
this part if the agency determines that its ability to utilize
currently available subsidies to meet the requirements of this
section would be jeopardized thereby.



50952.  The agency shall also seek to attain all of the following
objectives:
   (a) Acquisition of the maximum amount of funds available for
subsidies for the benefit of persons and families of low or moderate
income occupying units financed pursuant to this part.
   (b) Housing developments providing a socially harmonious
environment by meeting the housing needs of both very low income
households and other persons and families of low or moderate income
and by avoidance of concentration of very low income households that
may lead to deterioration of a development.
   (c) Emphasis on housing developments of superior design,
appropriate scale and amenities, and on sites convenient to areas of
employment, shopping, and public facilities.
   (d) Increasing the range of housing choice for minorities in lower
income households and other lower income households, rather than
maintaining or increasing the impaction of low-income areas, and
cooperation in implementation of local and areawide housing
allocation plans adopted by cities, counties, and joint powers
entities made up of counties and cities.
   (e) Reducing the cost of mortgage financing for rental and
cooperative housing to provide lower rent for persons and families of
low or moderate income.
   (f) Reducing the cost of mortgage financing for home purchase, in
order to make homeownership feasible for persons and families of low
or moderate income.
   (g) Identification of areas of low vacancy rates where
construction is needed, of areas of substandard housing where
rehabilitation is needed, and of areas of credit shortage where
financing is needed for transfer of existing housing, so as to
maximize the impact of financing activities on employment, reduction
of housing costs, and maintenance of local economic activity.
   (h) A balance between urban metropolitan, nonmetropolitan, and
rural metropolitan housing developments, and between family housing
and housing for the elderly and handicapped, in general proportion to
the needs identified in the California statewide housing plan.
   (i) Minimization of fees and profit allowances of housing sponsors
so far as consistent with acceptable performance, in order to
maximize the benefit to persons and families of low or moderate
income occupying units financed by the agency.
   (j) Full utilization of federal subsidy assistance for the benefit
of persons and families of low or moderate income.
   (k) Full cooperation and coordination with the local public
entities of the state in meeting the housing needs of cities,
counties, cities and counties, and Indian reservations and rancherias
on a level of government that is as close as possible to the people
it serves.
   ( l) Promoting the recovery and growth of economically depressed
business located in areas of minority concentration and in
mortgage-deficient areas.
   (m) Revitalization of deteriorating and deteriorated urban areas
by attracting a full range of income groups to central-city areas to
provide economic integration with persons and families of low or
moderate income in those areas.
   (n) Implementation of the goals, policies, and objectives of the
California Statewide Housing Plan.
   (o) Location of housing in public transit corridors with high
levels of service.
   (p) Reducing the cost of mortgage financing for rental housing
development in order to attract private and pension fund investment
in such developments.
   (q) Reducing the cost of mortgage financing for second unit rental
housing, as defined by Section 65852.2 of the Government Code, in
order to make rental housing more affordable for elderly persons and
persons and families of low or moderate income.



50952.5.  (a) It is the intent of the Legislature, and it shall be a
goal of the agency, that not less than one-half of the dollar amount
of financing for single-family homes shall fund loans for purchasers
who will be the first occupant.
   (b) The agency shall include in its annual report required by
Section 51005 specific information evaluating the extent to which the
agency has attained this goal.



50953.  No provision of this division shall be construed as a
restriction or limitation upon any powers which the agency or any
local public entity might otherwise have under any laws of this
state, and this part is cumulative with respect to these powers. This
division shall be deemed to provide a complete, additional, and
alternative method for doing the things authorized thereby, and shall
be regarded as supplemental and additional to powers conferred by
other laws. The issuance of bonds and refunding bonds under this part
need not comply with the requirements of any other law applicable to
the issuance of bonds, and in the construction or acquisition of a
housing development or a residential structure pursuant to this
division, the agency need not comply with the requirements of any
other law applicable to construction or acquisition of public works,
except as specifically provided in this division. The agency shall
adopt regulations for review of construction contracts for the
construction or rehabilitation of housing developments and
residential structures financed under this division and shall require
that on construction of this housing which is financed by a
construction loan from the agency, other than mutual self-help
housing developments, all workers employed in the construction,
exclusive of maintenance work, shall be paid not less than the
general prevailing rate or per diem wages for work of a similar
character in the locality in which the construction is performed, and
not less than the prevailing rate of per diem wages for holiday and
overtime work. The agency shall determine or require determination of
the general prevailing rate of per diem wages in accordance with the
standards set forth in Section 1773 of the Labor Code. Apprentices
shall be employed in the construction of housing developments in
accordance with the regulations of the agency, which shall impose the
same requirements as contained in Section 1777.5 of the Labor Code,
except as to differences necessitated by the methods of awarding
construction contracts for housing developments financed under this
division.


50954.  The exercise of the powers specified in this division will
be in all respects for the benefit of the people of the state, for
their well-being and prosperity, and for the improvement of their
social and economic conditions, and the agency shall not be required
to pay any tax or assessment on any property owned by the agency
under the provisions of this division or upon the income therefrom.
Any bonds issued by the agency under the provisions of this division,
their transfer, and the income therefrom shall at all times be free
from taxation by the state or any political subdivision or other
instrumentality of the state, excepting inheritance and gift taxes.



50955.  (a) The agency and every housing sponsor shall require that
occupancy of housing developments assisted under this part shall be
open to all regardless of any basis listed in subdivision (a) or (d)
of Section 12955 of the Government Code, as those bases are defined
in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of
subdivision (p) of Section 12955, and Section 12955.2 of the
Government Code, that contractors and subcontractors engaged in the
construction of housing developments shall provide an equal
opportunity for employment, without discrimination as to any basis
listed in subdivision (a) of Section 12940 of the Government Code, as
those bases are defined in Sections 12926 and 12926.1 of the
Government Code, and except as otherwise provided in Section 12940 of
the Government Code, and that contractors and subcontractors shall
submit and receive approval of an affirmative action program prior to
the commencement of construction or rehabilitation. Affirmative
action requirements respecting apprenticeship shall be consistent
with Chapter 4 (commencing with Section 3070) of Division 3 of the
Labor Code.
   All contracts for the management, construction, or rehabilitation
of housing developments, and contracts let by housing sponsors,
contractors, and subcontractors in the performance of management,
construction or rehabilitation, shall be let without discrimination
as to any basis listed in subdivision (a) of Section 12940 of the
Government Code, as those bases are defined in Sections 12926 and
12926.1 of the Government Code, except as otherwise provided in
Section 12940 of the Government Code, and pursuant to an affirmative
action program, which shall be at not less than the Federal Housing
Administration affirmative action standards unless the board makes a
specific finding that the particular requirement would be unworkable.
The agency shall periodically review implementation of affirmative
action programs required by this section.
   It shall be the policy of the agency and housing sponsors to
encourage participation with respect to all projects by minority
developers, builders, and entrepreneurs in all levels of
construction, planning, financing, and management of housing
developments. In areas of minority concentration the agency shall
require significant participation of minorities in the sponsorship,
construction, planning, financing, and management of housing
developments. The agency shall (1) require that, to the greatest
extent feasible, opportunities for training and employment arising in
connection with the planning, construction, rehabilitation, and
operation of housing developments financed pursuant to this part be
given to persons of low income residing in the area of that housing,
and (2) determine and implement means to secure the participation of
small businesses in the performance of contracts for work on housing
developments and to develop the capabilities of these small
businesses to more efficiently and competently participate in the
economic mainstream. In order to achieve this participation by small
businesses, the agency may, among other things, waive retention
requirements otherwise imposed on contractors or subcontractors by
regulation of the agency and may authorize or make advance payments
for work to be performed. The agency shall develop relevant selection
criteria for the participation of small businesses to ensure that,
to the greatest extent feasible, the participants possess the
necessary nonfinancial capabilities. The agency may, with respect to
these small businesses, waive bond requirements otherwise imposed
upon contractors or subcontractors by regulation of the agency, but
the agency shall in that case substantially reduce the risk through
(1) a pooled-risk bonding program, (2) a bond program in cooperation
with other federal or state agencies, or (3) development of a
self-insured bonding program with adequate reserves.
   The agency shall adopt rules and regulations to implement this
section.
   Prior to commitment of a mortgage loan, the agency shall require
each housing sponsor, except with respect to mutual self-help
housing, to submit an affirmative marketing program that meets
standards set forth in regulations of the agency. The agency shall
require such a housing sponsor to conduct the affirmative marketing
program so approved. Additionally, the agency shall supplement the
efforts of individual housing sponsors by conducting affirmative
marketing programs with respect to housing at the state level.
   (b) Notwithstanding subdivision (a), with respect to familial
status, subdivision (a) shall not be construed to apply to housing
for older persons, as defined in Section 12955.9 of the Government
Code. With respect to familial status, nothing in subdivision (a)
shall be construed to affect Sections 51.2, 51.3, 51.4, 51.10, 51.11,
and 799.5 of the Civil Code, relating to housing for senior
citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil
Code and subdivisions (n), (o), and (p) of Section 12955 of the
Government Code shall apply to subdivision (a).




50956.  It shall be the policy of the agency to coordinate its
activities with the department. It shall be the policy of the agency
to conduct its operations so as to be fiscally self-sufficient and so
as not to require appropriations from the General Fund for payment
of its administrative costs or to service bonds of the agency.




50957.  No development or construction loan shall be made pursuant
to this part if the agency determines that the making of such a loan
would result in the permanent loss of a subsidy or a reduction in
future subsidies due to the failure of the agency to use currently
available subsidies.



50958.  Mortgage loans made pursuant to this part to housing
sponsors, other than local public entities and nonprofit housing
sponsors of rental and cooperative housing developments, shall not
exceed 95 percent of the development costs of the housing development
for which the loan is made. Loans made pursuant to this part to
local public entities and nonprofit housing sponsors shall in no
event exceed 100 percent of development costs.



50959.  This division is intended to benefit purchasers and
residents of housing developments who are persons and families of low
or moderate income and shall be liberally construed to allow such
persons to initiate civil actions and to enforce rights, duties and
benefits under this division and regulations adopted pursuant to this
division; provided however, this section shall not limit, modify or
restrict the standing of other persons to initiate civil actions by
reason of the action or inaction of the agency, department or
commission; and provided further that this section shall not
authorize any action contesting or affecting the validity or
enforceability of any bonds or insurance issued under this division
or of any of the proceedings of, or actions taken by, the agency
relative to such bonds or insurance.



50960.  A loan document for a loan that is not secured by real
property and is made to a person, not including a firm, association,
partnership, organization, corporation, limited liability company, or
other group, however formed, shall state that the loan is a recourse
obligation and that the personal property of the borrower may be
subject to or sold pursuant to a lien in order to pay the obligation.




50961.  It shall be the policy of the agency to encourage housing
location in public transit corridors so that residents may have
convenient access to public transportation services.



50962.  The same notice requirements as specified in Section
65863.10 of the Government Code shall apply to rental housing
developments that receive financial assistance pursuant to this part.



50963.  (a) The agency shall report to the Legislature, on or before
December 31, 2011, and 2012, on the status of funding awarded to the
agency through the federal Housing Finance Agencies Innovation Fund
for the federal Hardest-Hit Housing Markets program.
   (b) A report to be submitted pursuant to subdivision (a) shall be
submitted in compliance with Section 9795 of the Government Code.
   (c) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on December 31, 2015.